The global trade and project environment has rarely been more volatile and challenging. No matter how good your company is and how great its track record; increasingly, clients are also demanding financial security before closing a deal. Especially with complex or international assignments. In this article you'll learn how guarantees and sureties from Allianz Trade can help you achieve your growth.
Strengthen your international growth with our guarantees
Why do you need a guarantee if you want to grow?
Despite economic and geopolitical challenges, contractors and exporters around the world are still full of ambition for (international) expansion. These projects, often international require guarantees that inspire a high level of confidence.
Can your company meet contract obligations? Will you manage to deliver as agreed? Not just tomorrow but even if the project takes longer? Suppliers who fail to deliver saddle clients with delays and financial setbacks. Clients want to limit that danger as much as possible. The need for certainty is particularly great in the case of large contracts with an international character.
Traditionally, bank guarantees have been used for this purpose. Less well known are the guarantees and sureties of insurers like us. This solution offers significant competitive advantages.
Like a bank guarantee, our guarantee offers your client appropriate financial compensation if your company fails to meet delivery agreements. These types of guarantees are becoming increasingly mandatory. Especially for complex projects in the construction, engineering and transportation sectors.
Why request a guarantee from us?
Large, (international) projects are operationally challenging enough. When drawing up a guarantee to support them, you need a partner who understands the nuances of local contracts, the legal framework and the market environment. Allianz Trade is such a party. With our support, you can easily set up the safety net you provide for your client, making great steps forward in business. But there are more benefits:
- By not turning to your bank for such security, your existing bank credit lines are not strained. As a result, the liquidity needed for your working capital remains intact.
- Also, insurers often dare to go a step further than the bank. For insurers, dealing with risk is their core business. Where the bank demands rock-hard securities (mortgage, cash reserves, etc.), insurers often offer more flexibility. For long-term projects, banks usually do not go beyond a five-year guarantee. With insurers, it is possible to discuss longer-term guarantees.
- Especially when doing business internationally, it is important to know the local (legal) customs and rules. We have global market knowledge and guarantee teams all over the world (230 guarantee experts). They can provide you with excellent guidance for your foreign growth.
What Guarantee do you need to grow?
Guarantees for commercial projects
